A recent report by the Controller of Budget has revealed that 10 Kenyan counties outpaced others in development spending during the 2025/26 financial year. Meru used 79.04% of its development allocation, while Trans Nzoia and Kirinyaga recorded 73.94% and 73.89% respectively. These counties, along with Kilifi, Wajir, Mandera, Marsabit, Samburu, Kericho, and Vihiga, demonstrated a strong commitment to development projects.
The top-performing counties allocated a significant portion of their budgets to development activities. Kilifi set the pace after using 84.52% of its development budget, followed by Wajir at 83.03% and Mandera at 80%. These counties spent a total of Sh34 billion on development projects, primarily focusing on infrastructure and other initiatives expected to provide long-term benefits to residents.
The County Governments Implementation Review Report for the 2025/26 financial year highlights the national picture, with counties absorbing just over half of their development budgets. All 47 county governments spent Sh126.69 billion on development activities, representing an absorption rate of 54% of the annual development budget of Sh233.69 billion. This leaves a substantial portion of the development budget unspent by the end of the financial year.
County spending continued to favour recurrent activities, with Sh369.89 billion, or 89.23% of total expenditure of Sh496.58 billion, going towards recurrent expenses. Development spending, at Sh126.69 billion, accounted for 25.51% of total expenditure. In comparison, development expenditure increased by about Sh3 billion compared with the previous financial year.
The report also highlights the challenges faced by counties in implementing development projects. While the 10 counties recorded relatively high absorption rates, 13 others used less than half of their development budgets during the year. Nakuru recorded an absorption rate of 48.97%, followed by Kajiado at 48.05% and Baringo at 47.76%.
The Controller of Budget has recommended that counties keep personnel costs at sustainable levels in the 2026/27 financial year and comply with regulations. The report identified 189 stalled projects across the counties with a combined value of Sh10.51 billion. Counties are also dealing with unpaid debts that have remained outstanding for more than five years.
Despite these challenges, counties have made progress in raising their own-source revenue. During the financial year, counties raised Sh96.08 billion through their own-source revenue, representing 89.99% of their combined annual target. The amount was an increase from the Sh67.3 billion collected in 2024/25.
Key points
- 10 Kenyan counties used over 70% of their development allocations in the 2025/26 financial year.
- Counties spent a total of Sh126.69 billion on development activities, with an absorption rate of 54%.
- The Controller of Budget has recommended that counties keep personnel costs at sustainable levels in the 2026/27 financial year.
